Five Audit-Proofing Tips for the Self Employed

When you’re self employed filing a Schedule C with your tax return, your chances of being audited are greater than if you were a wage earner.

Why? Because the IRS suspects that you will attempt to either hide income or write off personal expenses as business deductions. Let’s face it, if all you are reporting on your tax return is income from a W2, what’s there to audit? Even if you input the numbers wrong, the IRS will match it up with the copy it got from your employer and send you a correction letter along with an adjustment to your refund or tax liability. According to various reports, audits of the self-employed are on the rise, here’s what you can do to keep the taxman off your back:

via Five Audit-Proofing Tips for the Self Employed - FoxBusiness.com.

I found this to be a great article. Some very good advice the most savvy self employed person should follow.